This article was first published on Loopring Protocol - Medium
We recently launched Loopring Exchange v2 (exchange.loopring.io) based on Loopring Protocol 3.6, and it has begun beta operation. We also launched the Loopring Wallet Android app and integrated the AMM swap natively. To encourage the Ethereum community to move to layer-2, we decided to initiate multiple mining programs at the end of 2020, including 1) L2 AMM Liquidity Mining, 2) AMM Swap Tournament, and 3) Orderbook Liquidity Mining. A total of 1.7 million LRC will be distributed within two weeks from program launch.
AMM Liquidity Mining
- AMM Liquidity Mining will be in 14-day cycles.
- We take random snapshots of the relevant AMM pools several times a day, and calculate the amount of rewards each LP earns based on the average of all snapshot balances in the cycle.
- The first batch of mining rewards are all issued in LRC. The mining rewards of each cycle will be directly distributed to LP’s layer-2 accounts within three days of the end of the cycle.
- For pools with liquidity mining, providing liquidity is how you mine. You automatically start mining without any other user action.
- Mining does not involve locking up your funds, but the LP tokens must stay in your Loopring layer-2 account. If you withdraw LP tokens to the Ethereum mainnet, you cannot get mining rewards, because it will not be recorded in the snapshots. You can transfer part or all of your LP tokens to other accounts on layer-2, but the mining rewards will also follow.
LP tokens are tokens minted by the AMM pool to LPs after adding liquidity to the pool. For example, the LP token for the LRC⇄ETH pool is called LP-LRC-ETH. The relative proportion of LP-LRC-ETH represents your actual ownership of the LRC⇄ETH pool. If you transfer LP tokens to other accounts, it is equivalent to ...
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Loopring Protocol - Medium